G/SCM/N/186/DOM/Suppl.1  
G/SCM/N/220/DOM/Suppl.1  
G/SCM/N/253/DOM/Suppl.1  
G/SCM/N/284/DOM/Suppl.1  
G/SCM/N/315/DOM/Suppl.1  
G/SCM/N/343/DOM/Suppl.1  
G/SCM/N/372/DOM/Suppl.1  
G/SCM/N/401/DOM  
12 May 2023 
(23-3353) Page: 1/6 
Committee on Subsidies and  Countervailing Measures  Original: Spanish  
 
  
SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1  
OF THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT ON  
SUBSIDIES AND COUNTERVAILING MEASURES  
DOMINICAN REPUBLIC  
The following communication, dated and received on 11 May 2023, is being circulated at the request 
of the delegation of the Dominican Republic.  
 
_______________  
 
 
In accordance with the format of the questionnaire in document G/SCM/6/Rev.1, prepared and 
adopted by the Committee on Subsidies and Countervailing Mea sures, the Dominican Republic 
hereby notifies the following:  
1  Title of the subsidy programme, if relevant, or brief description or identification of the 
subsidy  
Subsidies granted under Law No. 57 -07 on encouraging the development of renewable sources of 
energy and their special regimes.  
2  Period covered by the notification  
This notification covers the period from 2008 to 2022.  
3  Policy objective and/or purpose of the subsidy  
Law No. 57 -07 provides the basic policy and regulatory framework to be applied throughout the 
national territory to encourage and regulate the development of and investment in projects that 
make use  of any source of renewable energy and seek to benefit fro m such incentives.  
4  Background and authority for the subsidy  
Constitution of the Dominican Republic, promulgated on 13  June 2015.  
General Electricity Law No. 125 -01, of 26 July 2001, as amended by Law No. 186 -07, of 
6 August  2007, and its regulations.  
Law N o. 57 -07, of 7 May 2007, on encouraging the development of renewable sources of energy 
and their special regimes.  
Law No. 253 -12 on strengthening the State's revenue capacity for fiscal sustainability and 
sustainable development.  G/SCM/N/186/DOM/Suppl.1 • G/SCM/N/220/DOM/Suppl.1 • G/SCM/N/253/DOM/Suppl.1 • 
G/SCM/N/284/DOM/Suppl.1 • G/SCM/N/315/DOM/Suppl.1 • G/SCM/N/343/DOM/Suppl.1 • 
G/SCM/N/372/DOM/Suppl.1 • G/SCM/N/401/DOM  
 - 2 -  
  Regulation No. 65 -23, impl ementing Law No. 57 -07 on encouraging the development of renewable 
sources of energy and their special regimes.  
5  Form of the subsidy (i.e. grant, loan, tax concession, etc.)  
Exemptions from i mport tax es and the tax on the transfer of industrialized goods an d services 
(ITBIS); and income tax credits.  
6  To whom and how the subsidy is provided (whether to producers, to exporters, or 
others; through what mechanism; whether a fixed or fluctuating amount per unit; if the 
latter, how determined)  
Exemption from import  taxes on equipment, machinery and accessories : Exemption from all types 
of import taxes on equipment, machinery and accessories imported by companies or individuals, 
needed to produce energy from renewable sources, as described in paragraph II of Article 9 of Law 
No. 57 -07. This incentive also extends to the importation of equipment for electric power 
transformation, transmission and interconnection to the National Interconnected Electric Grid 
(SENI), for projects based on renewable sources, which comply w ith this law. Equipment and 
materials under this chapter are also exempt from the payment of the tax on the transfer of 
industrialized goods and services (ITBIS) and all final sale s taxes.  
Tax relief on external financing : Pursuant to Article 11, the tax o n interest payments for external 
financing, established by Article 306 of the Tax Code, as amended by Tax Reform Law No. 557 -05, 
of 13 December 2005, is reduced to 5% for projects developed under Law No. 57 -07. 
Tax incentives for self -producers : Pursuant t o Article 12, depending on the renewable energy 
technology associated with each project, a one -off income tax credit of up to 40% of the cost of 
investment in equipment is granted to owners or tenants of family homes, or commercial or industrial 
premises w ho switch to renewable energy systems, or expand existing ones, for their own private 
energy consumption, and whose projects have been approved by the relevant agencies.  
Over the next three years, 33.33% of this tax credit will be deducted from the annual income tax 
payable by the recipient. The Directorate -General of Internal Revenue will require a certificate from 
the National Energy Commission confirming that the application is genuine.  
7  Subsidy per unit, or in cases where this is not possible, the total amount or the annual 
amount budgeted for that subsidy (indicating, if possible, the average subsidy per unit in 
the previous year). Where provision of per unit subsidy information (for the year covered 
by the notification, for the previous year, or both) i s not possible, a full explanation  
Incentive for community projects: Pursuant to Article 13, all social institutions (community 
organizations, producer associations, registered and incorporated cooperatives) wishing to develop 
small -scale renewable energy sources (up to 500 kW) to be used by the community, may access 
financing funds at the lowest market rate for development projects, for an amount up to 75% of the 
total cost of the work and system installation.  
To this end, every year the Ministry of Energy  and Mining (MEM) will transfer 20% of incoming 
resources to the renewable energy and energy saving fund, provided for in Law No. 112 -00, of 
29 November 2000, establishing a consumption tax on fossil fuels and petroleum products.  
8  Duration of the subsidy and/or any other time limits attached to it, including date of 
inception/commencement  
Tax incentives for self -producers: Pursuant to Article 12, depending on the renewable energy 
technology associated with each project, a one -off income tax credit of up to 40% of the cost of 
investment in equipment is granted to owners or tenants of family homes, or commercial or industrial 
premises who switch to renewable energy systems, or expand existing ones, for their own private 
energy consumption, and whose projects have been approved by the relevant agencies.  
 G/SCM/N/186/DOM/Suppl.1 • G/SCM/N/220/DOM/Suppl.1 • G/SCM/N/253/DOM/Suppl.1 • 
G/SCM/N/284/DOM/Suppl.1 • G/SCM/N/315/DOM/Suppl.1 • G/SCM/N/343/DOM/Suppl.1 • 
G/SCM/N/372/DOM/Suppl.1 • G/SCM/N/401/DOM  
 - 3 -  
  Over the next three years, 33.33% of this tax credit will be deducted from the annual income tax 
payable by the recipient. The Directorate -General of Internal Revenue will require a certificate f rom 
the National Energy Commission confirming that the application is genuine.  
9  Statistical data permitting an assessment of the trade effects of the subsidy. The 
specific nature and scope of such statistics is left to the judgement of the notifying 
Member.  To the extent possible, relevant and/or determinable, however, it is desirable 
that such information include statistics of production, consumption, imports and exports 
of the subsidized product(s) or sector(s):  
(a) for the three most recent years for whic h statistics are available;  
INSTALLED CAPACITY OF THE NATIONAL INTERCONNECTED ELECTRIC GRID  
(SENI), 2018 -2022  
 
Source: Electricity Directorate, National Energy Commission, 2023.  
NET METERING PROGRAMME INSTALLED CAPACITY1, 2011 -2022  
 
 
1 Includes photovoltaic technology only. For more information, please see: 
https://www.cne.gob.do/documentos/medicion -neta-documentos/ . 
SENI Installed  Capacity  
 G/SCM/N/186/DOM/Suppl.1 • G/SCM/N/220/DOM/Suppl.1 • G/SCM/N/253/DOM/Suppl.1 • 
G/SCM/N/284/DOM/Suppl.1 • G/SCM/N/315/DOM/Suppl.1 • G/SCM/N/343/DOM/Suppl.1 • 
G/SCM/N/372/DOM/Suppl.1 • G/SCM/N/401/DOM  
 - 4 -  
   
Investment in Renewable Energy Projects , 2020 -2023  
 
Source: National Energy Information System, National Energy Commission, 2023.  
Foreign Investment in Renewable Energy Projects , 2020 -2023  
 
Source: National Energy Information System, National Energy Commission, 2023.  
  
  G/SCM /N/186/DOM/Suppl.1 • G/SCM/N/220/DOM/Suppl.1 • G/SCM/N/253/DOM/Suppl.1 • 
G/SCM/N/284/DOM/Suppl.1 • G/SCM/N/315/DOM/Suppl.1 • G/SCM/N/343/DOM/Suppl.1 • 
G/SCM/N/372/DOM/Suppl.1 • G/SCM/N/401/DOM  
- 5 - 
 
TABLE 1. VALUE OF INCENTIVES GRANTED BY TYPE, IN CURRENT DOMINICAN PESOS (DOP)  
Incentives  2020  2021  2022  Accumulated  
(2008 -2022)  
(1) ITBIS  DOP 409,688,982.62  DOP 481,490,214.31  DOP 391,193,259.46  DOP 4,054,852,169.18  
(2) Tax credit  DOP 171,866,579.87  DOP 587,430,468.23  DOP 290,088,946.32  DOP 4,008,237,507.94  
(3) Self-producers' imports  DOP 159,289,515.20  DOP 142,547,020.46  DOP 550,713,301.47  DOP 1,678,127,944.85  
(4) Concessionaires' imports  DOP 555,528,312.88  DOP 151,317,599.57  DOP 457,697,126.06  DOP 4,632,218,557.42  
Total  DOP 1,296,373,390.57  DOP 1,362,785,302.57  DOP 1,689,692,633.31  DOP 14,373,436,179.39  
Source: Law No. 57 -07 Incentives Dept., National Energy Commission, 2023.  
TABLE 2. NUMBER OF INCENTIVES GRANTED BY TYPE  
Incentives  2020  2021  2022  Accumulated  
(2008 -2022)  
(1) ITBIS  755 964 1239 6821 
(2) Tax credit  138 441 307 2454 
(3) Self -producers' imports  282 234 236 2575 
(4) Concessionaires' imports  59 61 169 1198 
Total  1,234 1,700 1,951 13,048 
Source: Law No. 57 -07 Incentives Dept., National Energy Commission, 2023.  G/SCM/N/186/DOM/Suppl.1 • G/SCM/N/220/DOM/Suppl.1 • G/SCM/N/253/DOM/Suppl.1 • 
G/SCM/N/284/DOM/Suppl.1 • G/SCM/N/315/DOM/Suppl.1 • G/SCM/N/343/DOM/Suppl.1 • 
G/SCM/N/372/DOM/Suppl.1 • G/SCM/N/401/DOM  
- 6 - 
  (b) for a previous representative year, which, where possible and meaningful, should 
be the latest year preceding the introduction of the subsidy or preceding the last major 
change in the subsidy.  
Prior to the promulgation of Law No. 57.07, the only progress in the non -conventional renewable 
energy sector was in the areas of research and potential assessment. The promulgation of this Law 
and its regulations marked a milestone for national energy development,  by creating the basis for 
attracting investment in renewable technology. However, the first large -scale wind farm and the first 
smaller -scale photovoltaic projects in businesses, factories and homes were not set up until 2011. 
In this connection, i t is on ly possible to display data on the installed capacity of the National 
Interconnected Electric Grid, comparing 2006 (the year prior to the introduction of the regulations) 
and 2022 (the most recent year for which data are available).  
Installed Capacity of the National Interconnected Electric Grid , 2006  
 
Source: National Energy Information System, National Energy Commission, 2023.  
Installed Capacity of the National Interconnected Electric Grid , 2022  
 
 
Source: National Energy Information System,  National Energy Commission, 2023.  
 
__________